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GIC Singapore issues corporate bonds with a 10-year maturity period. Bondholders will receive interest on a semi-annual basis. The yield to maturity is 8.75 percent

GIC Singapore issues corporate bonds with a 10-year maturity period. Bondholders will receive interest on a semi-annual basis. The yield to maturity is 8.75 percent and the bond is currently selling at 95 percent of par. Calculate the coupon rate of this bond.

a. 3.09% b. 5.24% c. 8.00% d. 10.24%

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